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Annual Report 2013
KPJ HEALTHCARE BERHAD
250
38.
Fair value of nancial instruments
(a)
Determination of fair value
Financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value
The following are classes of nancial instruments that are not carried at fair value and whose carrying amounts are reasonable
approximation of fair value:
Note
Receivables
23
Deposits, cash and bank balances
24
Payables
26
Borrowings
27
Deposits
29
The carrying amounts of these nancial assets and liabilities are reasonable approximation of fair values, either due to their short-
term nature or that they are oating rate instruments that are re-priced to market interest rates on or near the reporting date.
The fair values of long term receivables and payables, which comprise advances to or from subsidiaries, are estimated by
discounting expected future cash ows at market incremental lending rate for similar types of lending, borrowing or leasing
arrangement at the reporting date.
(b)
Fair value measurement
The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities.
Quantitative disclosures fair value measurement hierarchy for asset as at 31 December 2013:
Fair value disclosures
Date of
valuation
Carrying
amount
RM’000
Fair value
RM’000
Investment properties (Note 15)
31 December 2013
44,660
62,746
Fair value disclosure of investment properties are categorised in Level 2 within the fair value hierarchy.
39.
Financial risk management objectives and policies
The Group and the Company are exposed to nancial risks arising from their operations and the use of nancial instruments. The key
nancial risks include credit risk, liquidity risk, interest rate risk and foreign currency risk.
The following sections provide details regarding the Group’s and the Company’s exposure to the above-mentioned nancial risks and the
objectives, policies and processes for the management of these risks.
Notes to the
Financial Statements
For the financial year ended 31 December 2013
(continued)